Red White & Bloom Brands Q3 2020 Quarterly Report

• Unaudited pro forma revenue, which includes the company's pending Michigan acquisition of PharmaCo and Completed acquisition of Platinum Vape and assumes the acquisitions had occurred on Jan. 1, 2020, would have been approximately CDN$48-million for the current quarter and CDN$128-million for the nine months ended Sept. 30;
• Gross margin before biological adjustments was 69%
• Quarter over quarter revenue growth of over 300%
• Cash position at the end of the quarter was $12 million

TORONTO, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”) is pleased to announce that its interim consolidated financial statements and related Management’s Discussion and Analysis for the 3^rd quarter ended September 30, 2020 are available on www.sedar.com. The Company is pleased to provide a summary of the following highlights for Q3:

Select financial results:

• Revenues for the period totaled - $6.09 million CDN; revenues include Platinum Vape results for 17 days in this quarter and exclude any results from PharmaCo
• Gross margin before fair value impacts was 69%

• Q3 2020 Adjusted EBITDA was negative $5.66M and negative $2.89 for the nine months ended September 30.

• Gain on fair value of biological assets recognized during the quarter was $1.8M and $10.1M for the five months ended September 30.

Operational highlights and recent events

• Closed a $25m bought deal financing during Q3
• Closed on the acquisition of Platinum Vape during Q3
• Entered into agreements to expand Platinum Vape product availability to the state of Arizona
• Began first harvest of Goliath Hemp in Illinois and commenced shipping post end of Q3
• Shareholders approved deferring the conversion date of the Preferred Shares to May 24, 2021
  

Chairman & CEO Brad Rogers stated, “We are pleased with our pro forma revenue so far this year and results for Q3, which included just a few days of recognizing revenue from our Platinum operations along with operations from our Granville Illinois operations. We are continuing to move forward with our plans to close on our other pending acquisition in Michigan, and have now set our sights on additional THC opportunities elsewhere in the US while fortifying our current operations.”